Pork is integral to the diet in China. A large population and growing median income mean that the demand for this form of meat is likely to be one of the most reliable parts of the 2008 economy. This small capital stock, which is listed on the NASDAQ, offers US investors an opportunity to benefit from the excellent business prospects of the Food Processing Industry in China.
Recently, the management has taken a series of measures to sustain business growth. It is present in both the feed and hog production parts of the China market. The management actively explores inorganic growth options, and has engaged industry veterans to aid in this endeavor. One hundred new stores have been added in 2007. The company now services over 600 Chinese retail feed outlets. This system of distribution is important in China. Hog production is dominated in China by small farmers. The company has won a license to export hogs to Hong Kong, and US investors will be pleased to know that hog production is exempt from income tax in China.
2007 has seen impressive business achievements by the company. Sales have tripled compared to 2006. Net income has climbed more than four times. The company ended last year with almost $8 million in cash, and is free of long term debt. The company plans to add some 400 additional retail outlets during 2008. Therefore, stock investors at this point can look forward to excellent profits and growth for the full 2008 year.
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